SFC publishes review of SEHK’s performance in regulating listing matters

The Securities and Futures Commission (SFC) conducted a review of The Stock Exchange of Hong Kong Limited’s (Exchange) regulation of listing matters during 2021, focusing on business valuations in major acquisitions and disposals, administration of the IPO Placing Guidelines and reviewing IPO placee lists, and processes and procedures related to the Listing Operation Governance Committee, Listing Compliance function, and management of conflicts of interest. The report highlights the Exchange’s successes in administering the Listing Rules and making pertinent enquiries in transactions with material questions, but also recommends improvements in disclosure practices among listed issuers, systematic processes for reviewing IPO placee lists, and greater guidance on assessing placee independence. The report suggests the use of the Fast Interface for New Issuance (FINI) and the updating of training materials to enhance the efficiency and effectiveness of the placee vetting process. The report also recommends enhancing the monitoring of case progress by senior personnel and updating training materials related to the Listing Operation Governance Committee, Listing Compliance function, and management of conflicts of interest.

Report:

https://www.sfc.hk/-/media/EN/files/COM/Reports-and-surveys/Report-on-the-SFCs-review-of-the-Exchanges-performance-in-its-regulation-of-listing-mattersEng202307.pdf?rev=059d978eca5e4476a374ad26246a3f1b&hash=77DDE0C7723655CB478B80A45C957930

Resource:

https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR80